Fiji’s Game-Changing Bill: Transforming Access to Business Funding

The Access to Business Funding Bill is expected to gain approval next week, as confirmed by the Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This significant legislation aims to address the financial challenges confronting micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern recognized both locally and internationally.

Kamikamica pointed out that access to finance is crucial for economic empowerment, particularly in rural areas where cooperatives, especially among the indigenous Taukei communities, have shown effectiveness. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the potential of cooperative models in promoting sustainable development and social progress.

The Fijian government intends to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Additionally, a newly established Cooperative Development Fund, recently approved by Parliament, aims to bolster the operational capabilities of cooperatives, reinforcing the government’s commitment to strengthening this vital sector.

Public consultations conducted earlier this year revealed that many SMEs are struggling to access traditional financing due to barriers like insufficient revenue histories, credit ratings, or collateral, resulting in a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap through innovative financing solutions. These include a small-offer regime that facilitates equity capital raising and provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).

As the bill moves forward, there is optimism that it will create a more inclusive financial landscape in Fiji. By empowering entrepreneurs and fostering local economic growth, this initiative could significantly benefit the broader community and enhance the resilience of Fiji’s economy. The government’s proactive approach indicated by the bill is a hopeful sign for the future of MSMEs and cooperatives, paving the way for a robust entrepreneurial ecosystem capable of sustaining long-term growth and development.